Elon Musk's Fraud Claims Against OpenAI: Key Trial Developments

Elon Musk's upcoming jury trial against OpenAI Inc. and its CEO Sam Altman is set to begin on April 28, 2026, in Oakland, California. The trial centers on Musk's allegations that OpenAI defrauded him by abandoning its nonprofit roots after he contributed $38 million to the startup. Musk is seeking damages that could reach as high as $134 billion, a figure that, if awarded, would be among the largest in legal history. OpenAI and Microsoft, which invested $13 billion in the company, have denied these allegations.

Bloomberg

U.S. District Judge Yvonne Gonzalez Rogers has made several significant rulings regarding the trial's proceedings. Notably, she has barred attorneys from questioning Musk about his past use of ketamine, stating that such inquiries would be irrelevant unless more concrete evidence is presented regarding the drug's effects. However, she has permitted limited questioning about Musk's attendance at the Burning Man festival, where he reportedly engaged in significant communications with OpenAI.

Bloomberg

The judge indicated that the jury's determination of damages will likely be advisory, with her ultimately deciding the amount. Musk's expert witness, financial economist C. Paul Wazzan, has estimated that Musk could be entitled to between $79 billion and $134 billion based on OpenAI's current valuation. Despite this, Judge Gonzalez Rogers expressed skepticism about Wazzan's methodology, questioning its persuasiveness. Lawyers for OpenAI and Microsoft have criticized Wazzan's approach as "made up" and "implausible."

Bloomberg

The trial is expected to last approximately four weeks, featuring testimony from several high-profile witnesses, including Musk, Altman, OpenAI co-founder Greg Brockman, and Microsoft CEO Satya Nadella. Other potential witnesses include Ilya Sutskever, a co-founder of OpenAI, and Ermira Murati, the former chief technology officer. Judge Gonzalez Rogers emphasized that all witnesses will be treated equally, requiring them to enter through the public entrance of the courthouse.

Bloomberg

Critics of Musk's claims argue that his demand for damages is excessively inflated, with some suggesting that seeking 2,900 times his initial investment is unreasonable. The defense has labeled Wazzan's financial calculations as unverifiable and unprecedented, raising doubts about the legitimacy of Musk's claims.

Bloomberg

• “Do I find it convincing? Not really, not particularly persuasive,” — Judge Yvonne Gonzalez Rogers

Bloomberg

• “Wazzan’s methodology is made up; his results unverifiable; his approach admittedly unprecedented; and his proposed outcome — the transfer of billions of dollars from a nonprofit corporation to a donor-turned competitor — implausible on its face,” — Lawyers for OpenAI and Microsoft

Bloomberg

This trial will not only address Musk's allegations but also scrutinize the evolving relationship between OpenAI and its early investors, setting a significant precedent for future legal disputes in the tech industry.

Bloomberg